No cheap power rate for
Project irrigators in their leaders' Klamath Basin Restoration
Agreement/KBRA

1/23/2010, by a KBC editor

Thursday at the unadvertised "public" meeting of the Klamath
Water Users Association / KWUA at OIT in Klamath Falls, more than
100 people came to ask questions and express opinions. The meeting
was mentioned in an article in the Herald and News, and there was
a notice on the KWUA website the day before the meeting.
Otherwise, the Klamath irrigators were not contacted about their
chance to question KWUA director Greg Addington
and attorney Paul Simmons.

Addington said that, although the affordable power rate
promised to Klamath irrigators is largely a loan, it would be 2-4
cents rather than full tariff rate.

President of Klamath Off Project irrigators Tom Mallams, who
was allowed to attend the negotiations for only power issues, said
that the DOI / Dept of the Interior representative said there was "a
snowball's chance" of that low of rate, and said it would be
closer to 5 to 7 cents. That would be added to an estimated 4.5 cent delivery
charge. So in essence, the rate could be 9.5 - 11.5 or more, possibly
more than current tariff rate.

When that fact was exposed at the closed-door KBRA
negotiations, the discussion was that they should use vague language to sell this
special power rate to their constituents.

According to Mallams, if the rate is set at 7 cents, and the
irrigators manage to obtain or create cheaper power, the
difference must be paid back. Whatever the power rate target
number is, plus transmission charges, will be the cheapest power
rate you will be able to get unless the full $41 million is
repaid. He said after the select settlement
stakeholders vote to accept the agreement, then Interior Secretary
Salazar will set the power rate. Recently they changed the
wording; the Secretary will be the one who approves the rate set
by the KBRA Management entity overseeing section 17 in the
agreement, which is still basically the same thing.

Other aspects of the KBRA were discussed. Giving US Fish and
Wildlife a huge new water right. Giving the river a new water
right. The
fact that the biological opinions and Endangered Species Act will
regulate how much water will be left over for our farms. The fact
that there is no Drought Plan.